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Unformatted text preview: Answers b and c are correct. 3. Which of the following statements is most correct? (Points: 6) Actions which increase net income will always increases net cash flow. One way to increase EVA is to maintain the same operating income with less capital. One drawback of EVA as a performance measure is that it mistakenly assumes that equity capital is free. Answers a and b are correct Answers a and c are correct. 4. Branch Corp's total assets at the end of last year were $315,000 and its net income after taxes was $22,750. What was its return on total assets (Points: 6) 7.22% 7.58% 7.96% 8.36% 8.78% 5. Nikko's Corp's total common equity at the end of last year was $305,000 and its net income after taxes was $60,000. What was its ROE? (Points: 6) 16.87% 17.75% 18.69% 19.67% 20.66% Script to validate exam and submit....
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- Spring '09
- Income Statement, Net Income, Generally Accepted Accounting Principles, net cash flow